Selling a client list?

rapyoke

I currently work as an IT consultant. I used to work for a smaller company (at the same time) doing the same thing only part-time on the weekends, but the owner is retiring and of his three technicians, he liked me the best and decided to basically give me the client list and main telephone number (as long as I pay for the service). I honestly have no idea how to run a business or how to do anything tax-related, so I was thinking of asking my current employer if they'd like to purchase the client list and have the calls forwarded to their main number. The list has maybe 200-300 very loyal residential and small business clients operating in the same area as my current employer, so I have no doubt that it would be of use to them.

Is there a tactful way to do this (when contacting my current employer)? Or am I better off just running the business on the side?

powerfool

Did they know that you were essentially competing with them this entire time? If not, they may be upset when they find out. I personally don't have a problem with that, you were just making a living for yourself doing honest work, but many employers don't like that. Honestly, I would keep it and run it. Don't use not knowing what you are doing as an excuse... use it as an opportunity to learn. Get yourself some Quickbooks Online and learn up on paying folks and such. Would all of the people doing work be part-time? If so, you could essentially pay them as 1099, just make sure you create a contract and adhere to the IRS rules that govern that, as you could end up on the hook for taxes that you essentially paid when you wrote the original checks.

rapyoke

They were completely fine with it. I have been working with the now-retired boss since HS and my current employer did not have any issue as he realized that it was a part-time position, and wouldn't really have much of an impact on my performance there. The two other guys left, so it basically would just be me running the business on the side.

WafflesAndRootbeer

If it's just business-folk and you know for a fact that your current employer can handle the extra work, then go for it. It's an unspoken rule that everyone around here in the IT industry has their own side business, but to be frank, you really need to get your ducks lined up in a row if you want to go that route unless you're comfortable winging it under the table.

Everyone

If you're worried about the tax stuff, you can hire an accountant to do that for you.

Why not ask the guy giving it to you to teach you a couple things on his way out? Also see if he will transfer the business name and EIN to you. That should only be a small fee and filing some paperwork with the state and IRS. It would probably be easier and cheaper than coming up with your own business name and registering it.

The Secretary of State's office for the state you live in usually has all the info and resources you need, look at their website. Some states are easier to get started in than others. When I lived in MT I started an LLC, it was really cheap and easy. I haven't started a business in IL now that I live here, because it costs a lot more.

btlegacy

If the clients are there then run with it and use outside sources to help you organize the finances and paperwork